Beruflich Dokumente
Kultur Dokumente
DEMAND ANALYSIS
FINAL REPORT
DISCLAIMER:
The author’s views expressed in this publication do not necessarily reflect the views of the United
States Agency for International Development or the United States Government.
CONTENTS
1. INTRODUCTION........................................................................... 4
OBJECTIVES AND METHODOLOGY ...............................................................................4
ORGANIZATION OF REPORT ..........................................................................................4
4. CONCLUSION ............................................................................ 12
ANNEX A. LIST OF SURVEYED COMPANIES............................................................13
ANNEX B. JORDANIAN HANDICRAFTS PRODUCERS SUREY ..............................1
ANNEX C. JORDANIAN HANDICRAFTS RETAILERS SURVEY..............................8
The purpose of this assignment is to identify the main handicraft sub-sector with the highest
demand and identify the main products sold under each category. The analysis of the
market demand study is based on interviews with major retailers and on surveying a sample
of the largest producers of three main handicraft sub-sectors, which are textile products,
ceramics and pottery and mosaic products. The survey forms for handicraft producers and
retailers are attached in Annex B and Annex C.
ORGANIZATION OF REPORT
Before delving into analyzing the market demand for handicrafts in Jordan, it is important to
define handicrafts and observe global trends of handicrafts including the major buyers such
as U.S and E.U and handicraft producers and exporters, namely China, India and Vietnam.
Handicraft products are not identified separately in H.S. Codes and therefore no reliable
trade data is available on an international level. According to an extensive study done by US
AID in 2006 on the “Global Market Assessment for Handicrafts” it specified that handicrafts
are part of a much larger home accessory market, which includes handcrafted, semi-
handcrafted, and machine-made goods. The study also examined the global demand of
handicraft as part of the home accessory market in the U.S. as an indicator of the size of
demand.
The global market for home accessories was estimated to be at least $100 billion in 2006
according to the study. The U.S. is the largest importer of the home accessories and was
valued at $67 billion, the second largest market is the E.U. collectively followed by Japan
and Hong Kong.
The study segments the home accessory market in the U.S. in 2004 according to market
share as follows: Accessories and Gifts 22%, Accent furniture 21%, Portable lamps 11%,
The study highlighted the potential buyers of handicrafts in the U.S. as follows:
1- Specialty and lifestyle stores as this category looks for unique products not
available at mass retailers.
2- Catalog and internet retailers, which is the direct to consumer channel. A high
percentage of young consumers in the U.S., including Hispanics and African
Americans, are buying home accessories through this channel.
3- Independent retailers, which are small stores such as tourists’ shops, art galleries
and museums. This channel has been traditionally a large and constant outlet for
handicrafts and there is a growth in the luxury market.
The study lists most common raw materials used by handicraft producers as classified by
ITC as follows: Basket, wicker and vegetable fibers, Metal, Leather, Paper, Pottery, Wood,
Soap, Textiles, Stone, Glass, Bone, Horn, Shells and a combination of different materials
and techniques.
As for price segmentation, the study cites four main handicraft categories and price
segments as follows:
The major exporters of handicrafts are China, India and Vietnam. China is the largest
exporter of home accessories globally and in April 2005, China produced an estimated 70%
of all home accessory products sold in the U.S. India total exports of handicrafts amounted
to $3.5 billion in 2007 and 30% is exported to the U.S. Vietnam Handicraft exports in 2007
stood at US$824 million.
However, not being able to measure the impact of handicrafts does not mean that it does
not have an impact on the economy. Handicrafts are part of a larger significant sector,
which is Tourism. Tourism accounts for approximately eleven per cent of the country’s gross
domestic product and is the second source of foreign income after receipts from Jordanians
working abroad.
The handicrafts industry is represented by two main associations in Jordan, which are the
Handicraft Producers Association (a voluntary association under the Ministry of Culture and
has around 150 registered members all of which are producers) and the Jordanian
Handicrafts Producers & Traders Association (a mandatory association under the Ministry of
Tourism and Antiquities, with around 250 registered members most of which are retailers).
Mr. Ra’ed Badri, chairman of the Handicraft Producers Association explained that he
estimates that Textiles products (including embroidery and weaving) are the largest
segment of production at 50%, followed by Ceramics and Pottery at 20%, Mosaic at 20%,
and 10% for the rest of the products including, jewelry, olive wood products, soaps and
bath products, copper items, and others.
The main types of handicraft producers are micro-manufacturing enterprises under the
umbrella of non-government organizations (NGOs), small manufacturing enterprises in the
private sector, retail outlets that have their own workshops, and education and training
facilities. Additionally, because there has been a significant input from international and
Jordanian donors, the private sector in the crafts community is small.
Mr. Ibrahim Zreiqi, chairman of the Jordanian Handicrafts Producers & Traders association
mentioned that retailers import handicrafts from China and India because it is 50-100%
cheaper than locally made handicrafts and tourism guides demand a 40% commission on
each item purchased by a tourist. Furthermore, supply of local made handicrafts does not
meet the demand according to Mr. Omar Afaghani who is the treasurer of the association
and he explained that it might take several weeks for a local producer to supply him with an
order.
The country lacks a central artists’ district where the wide spectrum of original Jordanian
products is put on display for tourists and locals alike. These bazaars, akin to a huge
warehouse, allow artists, designers and craftsman the opportunity to exhibit their work,
whilst also offering tourists the option of one destination for all their purchases
By far, tourists are the largest buyer segment of handicrafts in Jordan. Tourism in Jordan is
affected by many economic and political factors and therefore the number of arrivals
fluctuates from year to year as can be seen in Table 1. The number of same day visitors is
almost equal to overnight visitors. Same day visitors are tourists who are passing through
Jordan on their way to other tourists destinations in the region such as Egypt, Lebanon,
Syria or Israel.
Mr. Badri mentioned that a tourist average spending on handicrafts is 70 JDs and he
also estimated the Jordanian handicraft sales to be around 30 million JDs a year.
An assumption is made that only overnight tourists purchase handicrafts, as same
day tourists may not have enough time to make substantial handicraft purchases.
An assumption is made that average spending of a tourist is per family and not
individual, which brings down the spending to about half of tourists visiting Jordan.
Another assumption is made that retailers display 80% imported handicraft versus
20% local handicrafts although the Tourism Law (2002 amendments) stipulates
under the handicraft section that handicraft retailers must display a minimum of
70% local handicrafts1.
1
Traditional and Popular Crafts and Industries and Trading therein regulation No. (36) for
the year 2002 issued under article (16) of Tourism Law No. (20) for the year 1998.
Overnight tourists in 2007 X average spending of tourist X 0.5 X 0.2 = Total value of
Jordanian handicrafts purchases in 2007
As for the distribution of Jordanian handicraft purchases by location, then handicrafts is sold
the most in Petra which receives the lion’s share of tourists according to the below table.
Furthermore, foreign visitors nearly doubled to Petra from 271,017 in 2006 to 458,466 in
2007 because of Petra was voted one of the seven world wonders in 2007.
Other popular sites include Jerash, Mount Nebo, Madaba, Qal’a Castle, Ajloun, Karak, Wadi
Rum, Um Qais and the Baptist Site.
Location of the handicraft retailer outlets plays a major role in the distribution of handicraft
purchases according to the nationality of tourists, according to major handicraft retailers
such as Afaghani in Amman and Mr. Zreiqi owner of Petra Tourism Complex in Petra. For
example, Mr. Omar Afaghani mentioned that in the Afaghani Amman store most of the sales
85% is to Arabs (70% Jordanians and 15% Arab nationals) and the rest 15% is sold to
foreigners. Arab tourists make up a large percentage of the tourists according to be the
below Table 3.
Mr. Zreiqi owner of a handicraft retail store in Petra said that most of the buyers are foreign
tourists and a small percentage is Arab nationals. This spilt in nationality of buyers
according to location influences the nature of handicraft products sold in retail outlets in
different locations.
Jordan tourism season starts from March until September and Jordan receives most of the
foreign tourists in April and May and end of November and December. Most of the Arab
nationals visit Jordan from June until September, according to both Mr. Afaghani and Mr.
Zreiqi.
As for the most sold handicrafts products, textile products followed by ceramics and mosaics
are the most sold inside Amman and in tourist sites around the Kingdom. The percentages
may vary but overall these three product categories are the most sold on a national level
according to the producers and retailers.
In addition to tourists, handicrafts are sold locally to Jordanians and to local companies and
governments as gift items and a small percentage of handicrafts are exported mainly to
Saudi Arabia and the Gulf region.
In 2008, the prime minister sent out an official circulation to the government’s 48
institutions (ministries, departments, etc) to use Jordanian made handicrafts and products
as official gifts. This creates an opportunity for local handicraft manufacturers to upgrade its
products and designs.
In this section, textile products, ceramics and pottery, and mosaic products will be analyzed
in terms of major products sold and segmentation of markets based on feedback from
surveying major producers of these three product categories. Market segments in the
handicraft industry tend to vary with individual products.
1-Textile Products
The most sold embroidery product is small gift items (coasters, tea cozy sets, soft toys,
make-up bags, etc) which are predominantly sold to tourists through duty free shops, gift
shops at hotels, producers own showrooms, and retailer’s outlets at tourist’s sites. Other
embroidery items that are popular with tourists are cushion covers, runners, shawls and
tablecloths amongst others.
Examples of the retail price range for small gift items sold by a successful private business
is 22$ - 25$ for a tea cozy set. Therefore, gift items that are under 30 USD$ are the most
sold embroidery product and tourists is the largest buyer segment.
Besides tourists, embroidery products are also sold to local buyers as corporate or
governmental gifts (embroidered wooden boxes), to hotels (tablecloths and wall hangings)
and to individual local buyers. Export markets for embroidery products make up 20% of
production and sales are concentrated in the Gulf region and Saudi Arabia.
As for weaving products, the main products are rugs, runners, wall hangings and pillows.
The largest buyers in descending order are governmental gifts, local buyers, tourists and
corporate gifts.
There are two main buyer segments for ceramics and pottery products, which are tourists
and local buyers. The largest buyer segment is the tourist market, and the most sold
ceramics and pottery products for tourists are small gift items and ornaments. Products are
sold through retail outlets at tourists sites.
Ceramics that are targeted at the local market are ceramic art ware and the most sold
products in descending order are (salad bowls, nut bowls, amphorae, plates and pencil
holders). In addition ceramics and pottery are sold as corporate and government gift items.
These products are sold either through the producers own showrooms or through retailers.
Around 70% of ceramics are sold locally and 30% is exported. Export markets for ceramic
and pottery products are concentrated in the Gulf region and Saudi Arabia.
3- Mosaic Products
According to the retailers, there is a high demand for mosaic products, which is not being
met by local production. In fact, it was mentioned by one of the large retailers that 80-90%
of mosaic sold in Jordan is made in Syria. The reason for low production in mosaic is
because it is very labor intensive and Jordan lacks the labor pool that will ensure
sustainability of the business for local producers.
The largest buyer segments in descending order are tourists, local buyers, hotels, export
orders, corporate and government gift items. Most mosaics are sold in the local market and
around 30% is sold to international markets including the U.S., France, the U.K. and the
Gulf region.
4. CONCLUSION
In conclusion, the highest demand for handicrafts is concentrated in three main sub-
sectors, which are textile products, ceramics and pottery and mosaic. The products with the
highest demand under the sub-sectors are mainly small gift items and the largest buyers
are the tourists segment.
The surveys revealed that handicraft producers design and develop the products according
to the target market. Handicraft producers target different products at different buyers
according to the season. For example, small gift items are made for tourists in the high
season, which is from March until September, special handicrafts are made in Ramadan
month for the local and export markets and gift items for government and companies are
made at the beginning of the calendar year.
No Sub-Sector Company
1 Ceramics and Pottery Silsal Ceramics
Ceramics and Pottery Arabesque Ceramics & Mosaics
2
Ceramics and Pottery Sarab Ceramics
3
Ceramics and Pottery Pottery Hut
4
Ceramics and Pottery Iraq Al Amir Women’s Association
5
Ceramics and Pottery Zalloum and Tamimi
6
7 Textile Products Al Burgan Handicrafts
Textile Products
8 Al Karma Center
Textile Products
9 Bani Hamida/ Madaba
Textile Products
10 Raghad Hatahet
11 Mosaic Al Gadara Factory
Date: _____________
Company Name:
Address:
Website:
NGO
Q1. Please list your main product categories and retail prices (Please attach the list if
needed)
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5._________________________________________________________________
________________________________________________________________
Q3. What was the total production size for your company in 2008? Please mention
total number of units/pieces
________________________________________________________________
Q4. What were your total annual sales for 2008 in volume? Please mention total
number of units/pieces
________________________________________________________________
Q5. What were your total annual sales for 2008 in value (Jordanian Dinars)?
________________________________________________________________
Q6. Please list in descending order the top five selling products (Please indicate
volume and value of annual sales for 2008)
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
Q7. Please list the raw materials used for each of the top five selling products and its
sources
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
Q9. Please list in descending order the average profit margin for the top five selling
products
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
Q10. Please list the primary categories of buyers for the top five selling products (e.g.
local buyers, tourists, corporate gifts, government gifts, local hotels, export
orders, etc)
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
Q11. If you export your products, what are the export markets? Please indicate what
products you sell in each market
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
________________________________________________________________
Q13. Please indicate the percentage of annual sales in value for local, regional and
international markets (e.g. 70% local, 20% regional and 10% international)
________________________________________________________________
Q14. How do you sell your products? Please list your marketing outlets (e.g. own
showroom, retailers, online orders, bazaars and exhibitions, etc)
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
Q19. Please check the most important challenges facing your product?
Quality control
_________________
Embroidery Marketing
Cross stitch embroidery Costing and pricing
Hand sewing Volume production methodologies
Machine sewing Small business management
Fabric painting and dying Financial management
Silkscreen Merchandising
Knitting Packaging
Doll making Others please specify
Weaving ________________
Candle making
Paper making
Silver Jewelry making
Copper items making
Basket making
Straw Binding
Soap Making
Carpentry
Pottery and Ceramics
Mosaics (glass and stone)
Fabric covered boxes and home accessories
Resin Mold making (for jewelry)
Resin Mold Making (for home accessories)
Puppetry
Glass painting
Developing new designs
Others please specify
________________
Date: _____________
Company Name:
Address:
Website:
Q1. Please list your main product categories and retail prices (Please attach the list if
needed or put the range of prices, e.g. from 1 JD – 10 JD for ceramics)
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
Q2. Please list in descending order the top five selling products (Please indicate
volume and value of annual sales for 2008)
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
________________________________________________________________
Q4. What were your total annual sales for 2008 in value (Jordanian Dinars)?
________________________________________________________________
Q5. Please list the primary categories of buyers for the top five selling products (e.g.
local buyers, tourists, corporate gifts, government gifts, local hotels, export
orders, etc)
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________
Q6. Please indicate the high seasons for your top five selling products (e.g.
embroidery sold most in June and July).
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________
4.________________________________________________________________
5.________________________________________________________________